Energy and Economy

U.S. President Imposes Global Tariffs Based on a Formula, Stock Market Plunges

On April 3, U.S. President Donald Trump introduced a broad swath of global tariffs, with the size of a country’s trade deficit with the United States dictating the size of the tariff, while also imposing a minimum 10% on most countries regardless of the balance of trade. The U.S. stock market had significant losses throughout the week. All Caspian region countries received the 10% flat rate, except for Kazakhstan that received a 27% tariff.

Source: Reuters

Taliban Requests $100 Million from World Bank to Resume CASA-1000 Power Project

On April 2, the Taliban government requested $100 million in financial support from the World Bank to restart construction on the CASA-1000 electricity transmission project that aims to export surplus hydroelectric power from Kyrgyzstan and Tajikistan to Afghanistan and Pakistan. Originally launched in 2016 and backed by the World Bank with over $1 billion, the project stalled after the Taliban’s takeover of the country. Afghanistan’s Ministry of Water and Energy emphasized that CASA-1000 could generate $50-100 million annually in transit fees for Afghanistan while improving regional connectivity.

Source: bne Intellinews

Azerbaijan, Georgia, Türkiye, and Bulgaria to Form Green Energy Corridor

On April 4, the Minister of Energy of Azerbaijan reported, "On Friday, the energy ministries of Azerbaijan, Georgia, Türkiye, and Bulgaria signed a memorandum of cooperation in the green energy sphere, kickstarting the process of creating a new green energy corridor." The memorandum, a draft of which was approved in February, will apply for three years and can thereafter be renewed for another three-year period.

Source: Interfax

Kazakhstan’s Quota under OPEC+ to Surpass 1.4 million Barrels Per Day in May

Kazakhstan’s oil production quota under the OPEC+ agreement will exceed 1.4 million barrels per day in May, reaching 1.486 million, according to an April 3 statement by the OPEC+ press service. The increase follows coordination with seven other member states: Saudi Arabia, Russia, Iraq, Kuwait, the UAE, Algeria, and Oman, which had announced additional voluntary cuts in April and November 2023. These countries will now implement a phased production adjustment totaling 411,000 barrels per day over three months. OPEC+ noted that these planned increases could be paused or reversed in response to shifting market dynamics. The group also reaffirmed commitments to compensate for any overproduction since January 2024, with updated compensation plans due to the OPEC Secretariat by mid-April.

Source: Astana Times

Kazakhstan Announces Mass Critical Minerals Discovery 

In the lead up to the landmark EU-Central Asia summit in Samarkand this April, Kazakhstan authorities have announced the discovery of a deposit of 20 million metric tons of metal deposits. If true, the announcement would make Kazakhstan the world’s third-largest holder of critical minerals, behind only China and Brazil. Among other crucial elements, the deposits include neodymium, cerium, lanthanum, and yttrium.

Source: Euasianet

Politics and Security

EU and Central Asia Hold Summit in Samarkand

On April 4, the EU and Central Asia held a summit in Samarkand, Uzbekistan. Central Asia was represented by all five presidents of the regional countries, while the EU was represented by President of the European Council António Costa and President of the European Commission Ursula von der Leyen. Discussions covered four major topics: transit corridors, cooperation on critical raw materials, clean energy, and digital connectivity. The EU promised €12 billion as part of the Global Gateway Initiative investment package. As part of the summit, the EU and Central Asia decided to elevate their relationship to a strategic partnership.

Source: European Council

Georgia’s President to Visit Azerbaijan and Armenia in April

On April 2, Georgia President Mikheil Kavelashvili’s advisor on international relations, Luke Ekhvaia, announced that the president will pay an official visit to Azerbaijan on April 14-15, followed by a trip to Armenia later in the month. The visits are part of Kavelashvili’s regional diplomatic agenda aimed at strengthening Georgia’s bilateral ties with its South Caucasus neighbors.

Source: APA

Azerbaijan Foils Iranian Plot to Kill Local Rabbi

Azerbaijani authorities have reported that Iranian officials conspired to assassinate a local rabbi. Reportedly, Iran’s Islamic Revolutionary Guards Corps (IRGC) hired Georgian drug trafficker Agil Aslanov to kill Azerbaijani-based Rabbi Shneor Segal. The State Security Service of Azerbaijan arrested Aslanov in January along with an Azerbaijani accomplice, and the pair have been charged with conspiring to commit a terrorist act. 

Source: The Washington Post